Is Tipping on the Way Out?

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tipTipping – whether you view it as an annoyance, an opportunity to help someone with a difficult job, or a chance to rate the service you received at a restaurant, it’s been a part of our culture for more than 100 years.

But there are some people who think that’s long enough. One of New York’s most prominent restaurant owners, Danny Meyer, has suspended tipping in his establishments, opting instead for higher menu prices to offset new laws requiring that waiters and other hourly employees receive a higher wage. This is already common practice in such countries as Japan and New Zealand.

However, raising prices is not a practical solution for some restaurants that could face a dramatic drop in customers. And many servers prefer gratuities to a higher minimum wage, as they can make many times more on a busy night, or if they are good at what they do.

As much as some business owners and economists are striving to characterize gratuities as unfair and counterproductive, it’s hard to imagine tipping ever becoming obsolete in the United States. We as customers like to reward people who treat us well when we go out to dinner, and having a way to express our disappointment when the service is poor.

And as long as that is the case, restaurant owners will continue to need a way to track customer tips, and distribute them after a shift.

This presents an ongoing challenge, particularly for small business owners who struggle with accurate distribution, or that are still using outdated methods of calculating tip outs. Let’s face it – this is not a fun job, and most owners feel their time is better served by managing the restaurant or spending time with customers.

If you are now struggling with this task, we’d like to introduce you to TIPS by Cliq®, a system designed to help managers quickly and securely tip out employees in real time. It’s simple to use, it eliminates the cost and waste of paper checks or handling cash, and you’ll find it much easier to cross this nightly chore off your list.
Best of all, come tax time you’ll have accurate IRS reporting with a system that is fully automated and customizable to the needs of your business.

Find out more about TIPS by Cliq